System and method for authorizing transactions in an authorized member network
In the disclosed transaction processing system, members of an authorized network of consumers and merchants manage account information using blockchain ledgers. Because both consumers and merchants maintain copies of the blockchain, for any consumer/merchant transaction, both entities can quickly validate the transaction because both are aware, via their blockchain entries, of the current status of the account sourcing the transaction, allowing fast and accurate transaction validation without the need to incur the processing charges inherent in traditional fiat currency credit transactions.
1. A computer-implemented method, comprising:
communicatively coupling, by a member device, to a merchant device of a plurality of merchant devices of an authorized network of nodes, wherein the authorized network of nodes comprises a plurality of member devices and the plurality of merchant devices, wherein each of the nodes is associated with at least one account, and a state of each account of each node is managed by a blockchain such that copies of the blockchain are maintained by at least a portion of the plurality of member devices and the plurality of merchant devices;
receiving, by the member device, blockchain updates for all accounts of which the member device is an authorized member;
determining, by the member device, whether account balances for each of the accounts in the blockchain updates are synchronized;
sending, by the member device, a transaction request to the merchant device, the transaction request including a blockchain message including a key, an account balance of an account associated with the member device and maintained in a first copy of the blockchain on the member device, and a transaction value;
receiving, by the member device, a rejection indication or a validation indication from the merchant device;
halting a transaction associated with the transaction request in response to reception of the rejection indication;
updating the first copy of the blockchain based on the transaction associated with the transaction request in response to reception of the validation indication from the merchant device.
2. The computer-implemented method of claim 1 wherein receiving the validation indication is in response to verification that each copy of the blockchain is synchronized, and that an account balance in a blockchain copy associated with the merchant device corresponds to the account balance in the blockchain message; and
wherein receiving, by the member device, the blockchain updates for all the accounts of which the member device is an authorized member is performed as part of a transaction process in response to the member device being inserted into, swiped, or tapped at the merchant device, but before the transaction request is sent to the merchant device.
3. The computer-implemented method of claim 1 , wherein receiving the rejection indication is in response to the blockchain not being synchronized between the member device and the merchant device or there are insufficient funds in an account associated with the member device.
4. The computer-implemented method of claim 1 , wherein each of the plurality of member devices comprises one of a portable transaction device, a smart card, a credit card, a mobile device, a cellular device, or a tablet device.
5. The computer-implemented method of claim 1 , wherein the member device comprises a virtual wallet to access one or more accounts, including the account, and each account is associated with a different blockchain.
6. The computer-implemented method of claim 1 , comprising:
receiving, by the member device, the first copy of the blockchain from a central authority; and
storing, by the member device, the first copy of the blockchain in a memory, wherein the memory is to store one or more blockchains of the authorized network of nodes, including the blockchain.
7. The computer-implemented method of claim 6 , wherein the member device receives the first copy of the blockchain from the central authority in response to an initial transaction with the merchant device.
8. The computer-implemented method of claim 1 , comprising periodically communicating, by the member device, with the merchant device to update the first copy of the blockchain.
9. A non-transitory computer-readable storage medium, the computer-readable storage medium including instructions that when executed by a processor, cause the processor to:
communicatively couple to a merchant device of a plurality of merchant devices of an authorized network of nodes, wherein the authorized network of nodes comprises a plurality of member devices and the plurality of merchant devices, wherein each of the nodes is associated with at least one account, and a state of each account of each node is managed by a blockchain such that copies of the blockchain are maintained by at least a portion of the plurality of member devices and the plurality of merchant devices;
receive, by the processor, blockchain updates for all accounts of which the processor is an authorized member;
determining, by the processor, whether account balances for each of the accounts in the blockchain updates are synchronized;
send a transaction request to the merchant device, the transaction request including a blockchain message including a key, an account balance of an account associated with a member device of the plurality of member devices and maintained in a first copy of the blockchain on the member device, and a transaction value;
receive a rejection indication or a validation indication from the merchant device;
halt a transaction associated with the transaction request in response to reception of the rejection indication;
update the first copy of the blockchain based on the transaction associated with the transaction request in response to reception of the validation indication from the merchant device.
10. The computer-readable storage medium of claim 9 , wherein receiving the validation indication is in response to verification that each copy of the blockchain is synchronized, and that an account balance in a blockchain copy associated with the merchant device corresponds to the account balance in the blockchain message; and
wherein receiving, by the processor, the blockchain updates for all the accounts of which the processor is an authorized member is performed as part of a transaction process in response to the member device being inserted into, swiped, or tapped at the merchant device, but before the transaction request is sent to the merchant device.
11. The computer-readable storage medium of claim 9 , wherein receiving the rejection indication is in response to the blockchain not being synchronized between the member device and the merchant device or there are insufficient funds in an account associated with the member device.
12. The computer-readable storage medium of claim 9 , wherein each of the plurality of member devices comprises one of a portable transaction device, a smart card, a credit card, a mobile device, a cellular device, or a tablet device.
13. The computer-readable storage medium of claim 9 , wherein the member device comprises a virtual wallet to access one or more accounts, including the account, and each account is associated with a different blockchain.
14. The computer-readable storage medium of claim 9 , comprising further instructions to cause the processor to:
receive and process the first copy of the blockchain from a central authority; and
store the first copy of the blockchain in a memory, wherein the memory is to store one or more blockchains of the authorized network of nodes, including the blockchain.
15. The computer-readable storage medium of claim 14 , wherein the member device receives the first copy of the blockchain from the central authority in response to an initial transaction with the merchant device.
16. The computer-readable storage medium of claim 9 , comprising further instructions to cause the processor to periodically communicate with the merchant device to update the first copy of the blockchain.
17. A member device comprising:
a processor; and
a memory storing instructions that, when executed by the processor, cause the processor to:
communicatively couple to a merchant device of a plurality of merchant devices of an authorized network of nodes, wherein the authorized network of nodes comprises a plurality of member devices and the plurality of merchant devices, wherein each of the nodes is associated with at least one account, and a state of each account of each node is managed by a blockchain such that copies of the blockchain are maintained by at least a portion of the plurality of member devices and the plurality of merchant devices;
receive, by the member device, blockchain updates for all accounts of which the member device is an authorized member;
determine, by the member device, whether account balances for each of the accounts in the blockchain updates are synchronized;
send a transaction request to the merchant device, the transaction request including a blockchain message including a key, an account balance of an account associated with the member device and maintained in a first copy of the blockchain on the member device, and a transaction value;
receive a rejection indication or a validation indication from the merchant device;
halt a transaction associated with the transaction request in response to reception of the rejection indication;
update the first copy of the blockchain based on the transaction associated with the transaction request in response to reception of the validation indication from the merchant device.
18. The member device of claim 17 wherein receiving the validation indication is in response to verification that each copy of the blockchain is synchronized, and that an account balance in a blockchain copy associated with the merchant device corresponds to the account balance in the blockchain message; and
wherein receiving, by the member device, the blockchain updates for all the accounts of which the member device is an authorized member is performed as part of a transaction process in response to the member device being inserted into, swiped, or tapped at the merchant device, but before the transaction request is sent to the merchant device.
19. The member device of claim 17 , wherein receiving the rejection indication is in response to the blockchain not being synchronized between the member device and the merchant device or there are insufficient funds in an account associated with the member device.
20. The member device of claim 17 , wherein each of the plurality of member devices comprises one of a portable transaction device, a smart card, a credit card, a mobile device, a cellular device, or a tablet device.